Furore As Belfast City Deal is shelved ‘temporarily’ by the UK government
A decision by the UK government to suspend the Belfast City Deal has sent shockwaves through the region.
It was less a bolt from the blue than a reality check. The UK government is facing a £22billion black hole in its finances and Labour has indicated that it will need to balance its books as a prime responsibility of government as it faces this short-trem financial crisis.
Projects such as the Southern Relief Road, the Mournes Gateway project including the much disputed ‘Gondola project’ and the new council chamber and arts and conference centre in Newry are now stalled until further notice.
This government decision may leave a lot of untidy business to level out such as contracts that may have been agreed and consultants who have completed work and need to be paid. Ratepayers will be curious as to how much the council has already spent on supporting the Belfast City Deal projects.
And other projects separate from the Belfast City Deal may also stick in the pipeline such as the Fisheries and Seafood Development Programme which the three County Down ports of Ardglass, Kilkeel and Portavgie were looking forward to for major infrastructural works. Harbour developments could also be on the chopping block in due course.
Overall, this is a massive blow to County Down but the government has indicated that if teh economic outlook improves that the Belfast City Deal projects could again be re-examined.
Newry Chamber Statement on UK Government Decision to Pause NI City & Growth Deals Funding
Newry Chamber of Commerce & Trade has written to the Secretary of State for Northern Ireland seeking urgent clarity over the future of major regeneration projects across the city and district including the Southern Relief Road.
This is following Friday afternoon’s announcement by the UK Government that they are ‘pausing’ the City & Growth Deals in Northern Ireland.
Edwina Flynn, President of Newry Chamber said:“Newry Chamber has always supported the Belfast Region City Deal and its positive contribution to projects in the Greater Newry Area.
“The announcement that city deals in Northern Ireland are paused is deeply disappointing.
“This afternoon we have written to the Secretary of State, Hilary Benn MP.
“We are seeking an urgent meeting and clarity on the impact of this decision for Newry. We will be asking that this decision is reversed to ensure that contracts can be honoured, and schemes can be progressed.
“The City Deals comprise of funding from both the NI Executive and the UK Government with local council input. It is not yet clear what the impact this decision will have on the schemes funded by the NI Executive, such as the Southern Relief Road as well as the Council-backed projects.
“The Southern Relief Road is a vital infrastructure project for this area and is of strategic regional importance. It is imperative that the NI Executive ensures this project is delivered and within the original timescale.
“Newry Chamber will now engage with the NI Executive, the Secretary of State and Newry, Mourne and Down District Council to evaluate the impact of this decision by the UK Government, which appears to have come out of nowhere.
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McNulty Says Belfast City Deal Decision Must Be Reversed
SDLP Newry & Armagh MLA Justin McNulty has said that a decision by the UK Government to pause funding for City Deals in the North must be reserved.
The SDLP group on Newry Mourne and Down District Council have called for a special council meeting to take place to discuss the issue.
The South Down area was set to benefit as part of the Belfast Region City Deal.
Mr McNulty said: “The idea of City Deals for parts of the North originated with the SDLP and we have fought for years to secure this vital commitment from the UK Government to invest in key projects that will provide much needed infrastructure, boost our economy and create jobs.
“It is totally unacceptable that the rug has been pulled out from under us at such a late stage.
“Whatever financial pressures the UK Government are facing, this is totally the wrong way to go about this, threatening projects that will change the face of Newry city centre and boost our tourism offering right across this area.”
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SDLP Says South Down Will Suffer Following Government Decision
SDLP Newry, Mourne and Down District Council Group Leader Councillor Gareth Sharvin said: “I think it is vitally important that council meets at the earliest possible opportunity to show a united front against this decision from the government.
“I believe that the best way to do this is through a special meeting and we submitted that request shortly after this news broke on Friday,
“The UK Government must reverse this decision so that towns and cities right across the North get the vital regeneration they have been waiting for.
“From Westminster to our local councils the SDLP will continue to make that case until this decision is overturned and these important projects get the funding they were promised.
“This is an area that has suffered from a lack of government investment for generations and to take away £200m from Newry Mourne and Down with the positive difference it could make is unthinkable.
“We simply can’t allow this to happen.”
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UUP call for urgent clarification on shocking City and Growth Deals announcement
Ulster Unionist Party Finance spokesperson, Dr. Steve Aiken OBE MLA, has called on the Treasury to provide urgent and full clarification on the announcement earlier today to pause its’ funding commitment to City and Growth Deals across Northern Ireland.
Dr. Aiken said: “This announcement has come as a total shock to everyone in Northern Ireland, particularly those who have been working to develop and implement projects under this essential funding.
“The decision to pause the funding commitment creates a number of urgent questions which require immediate clarification.
“Across Northern Ireland there are many projects, worth tens of millions of pounds, which are in various stages of development, some are in construction as we speak.
“The Government need to urgently clarify if existing projects are impacted by this decision, and if not, at what stage of planning or delivery will this decision impact on existing projects.
“It would be ridiculous to consider that this government would renege on existing contracts and agreements that have already cost many millions of pounds.
“I am very concerned that, once again, the new Government at Westminster seem to have made a decision that has a huge impact on many thousands of people, without seeming to have engaged with any of those who will be impacted.”
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Casement Park Development Hits The End Of The Road – For Now
Statement from Communities Minister Gordon Lyons
Gordon Lyons, Assembly Communities Minister said: “The UK Government has confirmed that, having receiving expert advice and analysis, they are not in a position to make any contribution to Casement Park to host Euro 2028 matches.
”I have been informed that it would not have been possible to build the stadium in time and that costs had escalated to over £400 million. Therefore the UK Government have determined this as not being value for money.
“Following this announcement, I will engage with the UK Government and other partners to see how Northern Ireland can still benefit from hosting the competition and ensure that there is a lasting legacy for football in Northern Ireland.
